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Microstrategy stock target raised at BTIG ahead of Bitcoin halving event

AuthorSam Boughedda
Published 04/05/2024, 08:47 AM
Updated 04/05/2024, 08:47 AM
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The MicroStrategy stock target was raised by one analyst this week in anticipation of the upcoming Bitcoin halving event.

The move suggests further confidence in MicroStrategy's strategic adoption of Bitcoin and its potential impact on the company's valuation. As the cryptocurrency market braces for a significant milestone, MicroStrategy's approach to buying Bitcoin positions it as a go-to stock in the cryptocurrency space.

Microstrategy stock rallies as Bitcoin hits record highs

MicroStrategy's (NASDAQ:MSTR) stock has experienced a significant surge amidst Bitcoin's continuous ascent to fresh record highs.

The company recently raised $782 million in a debt sale, specifically to acquire additional Bitcoin. The company now holds well over 200,000 Bitcoins. As a result of the leading crypto’s stellar performance, MicroStrategy's stock has surged more than 133% this year and over 432% in the last 12 months.

The unwavering confidence in Bitcoin's potential, coupled with MicroStrategy's strategic investments, continues to be a driving force behind the rally amidst the cryptocurrency's record-breaking surge.

Microstrategy stock to continue gaining - BTIG

Analysts at BTIG are optimistic about the potential gains for investors in MSTR, with the firm raising its price target for the stock to $1,800 per share from the previous target of $780.

BTIG stated that MSTR's stock rally has been driven by three things: “1) the price of bitcoin has rallied 50%, which benefits MSTR's corporate strategy of acquiring and holding bitcoin (~214k in total), 2) accretive capital raises in the form of equity and convertible debt which has increased the number of bitcoin per share for equity holders, and 3) the implied premium of MSTR's bitcoin holdings within a sum-of-the-parts (SOTP) valuation analysis has increased to more than 2x,
compared to ~1.5x on average during the last year.”

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The firm thinks the implied premium of the company's Bitcoin holdings in their Sum of the Parts analysis has settled into a new norm above 2x. In addition, BTIG also expects the company to benefit from catalysts during the coming year, specifically the Bitcoin halving event estimated to take place this month.

During a halving event, which occurs after 210,000 blocks are mined in the Bitcoin network (every 4 years), the number of BTC rewarded to ecosystem participants is cut in half.

The Bitcoin halving events have a history of dramatic increases in the Bitcoin price, according to the firm. “The upcoming Bitcoin halving has been a catalyst behind the rally in the price of Bitcoin, in our view,” they wrote.

“Our 2.4x bitcoin premium estimate within our SOTP valuation seeks to reflect the range the premium has recently traded (2.0x to 2.6x) and also seeks to capture potential upside from bitcoin price appreciation following the upcoming Bitcoin halving event.”

Latest comments

Very dangerous financial hazard, could loose up to 99% of investment. Crypto used for money laundering will have devastating conseqences for investors.
you have no evidence for fine claims, crypto has been so regulated with kyc, the currency that is most laundered with and is used most for drug dealing, is usd. so come up with something real and with some documented expenses instead of the boomer crap, with crypto being dangerous and only criminals using it. mstr, has found a mega smart way to make money, because the price of btc keeps rising, and in 8 years they will be over 5-700,000$ and then you can side and shout scam and have missed a mega return, because you don't take the time to properly understand things, had you done that, you would have come up with some factual arguments for your views... so better to shut up if it's something you don't know anything about.
Raise funds to buy Bitcoin....lower earning forecast........perfect scam....
Even if their earnings forecast is lower wouldn’t the company be worth more if the price of their most held asset goes even more parabolic? Not trying to challenge or attack you, just a genuine question. I suppose because they are adding further liabilities to continue buying more bitcoin is the biggest concern which, yeah, I definitely think that’s kind of stupid. Certainly quite a risky bet.
Scam, dahm you dont know what talking about, are you one of those old fools who think $ is the future? even if they dilute the value and create more and more debt? btc solves that problem by halving the dividend every 4 years, after 3 halvings that have shown the same result, btc increases in price. because supply is falling. mstr is just one of the first companies to realize that they are making a lot of money on the bitcoin price. but of course, it's never fun to see everyone else cashing in while you stand back and realize you've made a mistake. You don't present any factual reason why it should be a scam??
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